The High Court has put to an end a legal battle between Kisumu Cotton Mills (Kicomi) and a bank that has lasted for more than two decades. In a landmark judgment, the company is expected to pay Trust Bank Limited that is currently under liquidation Sh79 million plus interest to be calculated based on the court rate from 2006, for it to save its land from being auctioned. This is after the court declined to stop the receiver and manager who the court declared to have been lawfully appointed from entering the company that was worth Sh13 billion as at 1999. The court declined to declare the charge and debenture instruments incapable of being enforced, saying they were properly executed. The company argued that registration of the debenture and charge were done after the company was put under the Central Bank of Kenya management in September 1998.

Source: Standard Digital September 25, 2020 21:00 UTC